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Question
The U-turn on fuel duty is disrespectful and shows a pattern of poor governance. The government’s decision was already released to the media, creating unnecessary uncertainty. Why did it take so long to realise that putting up fuel duty during an energy crisis is a bad idea? Is the Chancellor seriously suggesting that the outlook is better now compared with how it looked at the last fiscal event?
Minister reply
The shadow Chancellor’s party would have had motorists hurtling full speed towards higher fuel costs. The government is keeping the freeze on fuel duty and protecting millions of motorists across the country. Additional measures include further action on red diesel for HGV drivers and other sectors.
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Question
The announcement to extend fuel duty relief later this year is too little, too late. The cost of fertiliser has increased by 44%, and the cut in red diesel duty will not touch the sides when the cost of fertiliser is rocketing through the roof. What message does the Minister think it sends to people that the Government will take action later in the year when people are feeling the pain in their pockets right now?
Minister reply
The government is taking steps to cut the duty on red diesel by more than a third, helping not just farmers but other sectors too, including in relation to freight.
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Question
Like so many Labour Government announcements, the announcement to extend fuel duty relief later this year is too little, too late. Other countries are cutting fuel duty now and cutting public transport costs now. What message does the Minister think it sends to people that the Government will take action later in the year when people are feeling the pain in their pockets right now?
Minister reply
The government is taking steps to cut the duty on red diesel by more than a third, helping not just farmers but other sectors too, including in relation to freight.
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Question
Residents raise concerns about how much they pay for car insurance compared with those in other areas. For low-paid workers who need their car for business, that additional premium represents a lot of money going out every year above and beyond what those in neighbouring areas pay. Will the Chief Secretary convene the insurance industry to see what can be done?
Minister reply
The government will manage the public finances while ensuring prices are brought down.
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Question
The Minister is not aware that the previous Conservative Government froze fuel duty for 14 years. However, how much extra money has the Treasury obtained as a result of the rise in the wholesale price of fuel at the pumps?
Minister reply
It is only because of the action this Government are taking that millions of motorists across the country will save money.
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Question
I welcome the efforts to support drivers at the petrol pumps, but this situation has not led to an increase in demand for electric vehicles. The automotive sector is facing a real crisis because of the ZEV mandate. There is no consumer demand to meet the escalating demands of the ZEV mandate. Will the Treasury please use its convening power across Government to bring forward the review of the mandate?
Minister reply
As I said in response to my right hon. Friend, this is a really important issue, and I will discuss it with the Exchequer Secretary.
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Question
Increased fuel costs are a real pain point for rural households who depend on their cars, spending nearly £800 more per year than urban residents. Will the Government listen to Liberal Democrats’ demands for an immediate 10p cut in fuel duty, which would bring down pump prices by 12p per litre?
Minister reply
These suggestions are made with good intentions but need funding sources.
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Question
I thank the Minister for recognising the important role hauliers and freight play in our national and local economies. The steps announced yesterday will support the 3,500 people in my constituency who work in transport and logistics. Will the Minister liaise with colleagues on other support for the logistics sector, including improved welfare facilities?
Minister reply
My hon. Friend raises a critical issue of hauliers and road haulage. We are discussing vehicle excise duty and fuel duty changes to save hauliers money.
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Question
Rural drivers in West Worcestershire will be delighted that the Chief Secretary to the Treasury has seen political reality, but why are we not allowing oil and gas extraction from our own basin when we allow an increase in Putin-produced oil and gas?
Minister reply
We have been clear that oil and gas will play a part in our fuel mix for years.
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Question
The Tories oversaw the only Parliament where living standards were lower at the end than they were at the start. This Government, by contrast, got wages up more in a year than the Tories did in a decade with better growth and inflation rates. Does the Chief Secretary agree that this is the best economic plan for delivering on my constituents' interests as motorists?
Minister reply
The fiscally responsible choices made have resulted in wage increases, lower inflation and interest rates.
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Question
I welcome the hon. and learned Lady to her new role. She was an excellent colleague when she was on the NATO Parliamentary Assembly, and it does not surprise me that she is the first of her intake to make it. Some 90% of my constituency is rural, and increases in fuel prices worry people. Will the hon. and learned Lady take the opportunity to do something that should have been done by the last Conservative Government? Rather than putting out false figures for raising fuel duty, why not offer certainty about future fuel costs?
Minister reply
The announcement saves the average motorist over £120 this year compared with inherited plans. Extending the cut until 31 December provides reassurance.
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Question
Does the Chief Secretary to the Treasury agree that it is right we did not rush into the Iran war and our Government’s plans are responsive, rather than knee-jerk reactions causing damage in the longer term?
Minister reply
The Conservative party would have raced to war.
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Question
The Government repeatedly point to the fuel finder website as the best way to keep prices low through competition. Yet costs have gone up so much in my constituency that there is no variation between pumps. High prices are crippling for local businesses such as fish merchants, who drive far distances to deliver. Driving is not avoidable in rural areas. Why do they not offer meaningful support beyond red diesel? What about EV charging?
Minister reply
We are supporting motorists meaningfully and the fuel finder scheme saves households up to £40 a year through competition.
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Question
Will the Chief Secretary to the Treasury reassure me that the Treasury understands fuel costs in rural areas not only relate to what motorists pay for driving but affect everything on sale in shops? The best way to help keep costs down is by keeping fuel costs down.
Minister reply
We are discussing with supermarkets to put downwards pressure on prices and help people with cost of living.
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Question
I thank my hon. Friend for recognising and supporting hauliers and logistics companies, such as the Malcolm Group in my constituency which supports many jobs. Those companies play a critical role in keeping shelves stocked. I echo calls to support greater welfare facilities for drivers. What about the safety of logistics staff who are targeted by criminals?
Minister reply
Measures will help hauliers right across the country. The Government are taking forward action on freight crime and welfare.
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Question
Does the Minister agree that one of the Government’s main responsibilities is to provide energy security for its citizens? Why won’t this Government issue more licences to drill in the North Sea, which would make us energy-sufficient and have a knock-on effect at the pumps?
Minister reply
The best way to get energy security is through renewables. New licences in the North Sea would not bring new oil and gas on stream for another 10 years.
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Question
The freeze in fuel duty will be a relief to drivers, but the lack of public transport in rural communities is problematic. With HS2 costing over £100 billion, would the Government redirect spending towards improving bus services across the country?
Minister reply
My hon. Friend raises an important point about the critical nature of bus services. We are providing more than £3 billion for buses over three years to cap fares at £3 and improve services. This includes funding for local authorities to implement fare initiatives.
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Question
The Minister's earlier statement about the war in Iran was inaccurate, as it was a NOFORN operation and there was no chance of UK involvement. Why did the Government decide to exempt oil and oil products from Russia under commodity codes 2709 and 2710?
Minister reply
The accusation that we are going soft on Russia is completely wrong. The new package of sanctions introduced is stronger today, rejecting any idea that there has been a shift in our stance.
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Question
Scotland’s high energy prices are causing significant issues for constituents and businesses. Will the Government commit to using extra VAT revenue from tax increases to provide a VAT freeze during this crisis?
Minister reply
I will not commit to that, no.
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Question
While the Chancellor’s decision to freeze fuel duty is welcome news, it merely delays an increase until the end of the year. Why won’t the Government cancel this rise altogether?
Minister reply
There is nothing humiliating about protecting millions of motorists across the country from rising fuel prices. The plans we inherited would have seen motorists paying more.
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Question
The carbon border adjustment mechanism will increase fertiliser costs, leading to higher food prices. Will the Government review this mechanism to protect constituents from further price increases?
Minister reply
We are taking measures on red diesel by cutting duty rates by over a third per litre to help farmers with increased fuel and fertiliser costs.
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Question
My rural constituency does not have regular or reliable bus services. Will the Minister meet me to discuss North Cornwall being part of the Government’s rural fuel duty relief scheme?
Minister reply
I am grateful for the hon. Member's request and would be happy to meet to focus on the matters at hand.
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Question
The Government’s decision to ease the prospect of Putin’s oil flowing into the UK’s market may benefit motorists. Can she explain the Treasury’s calculation, the rationale behind this move, and its cost to the Government's integrity?
Minister reply
These licences are specific, targeted, and reviewed regularly. The EU will achieve a full ban by 2026; we are staging the impact on our economy. This measure is sensible when it comes to supporting Ukraine and putting pressure on Vladimir Putin.